On September 11, LC2701, the main contract for lithium carbonate futures, once fell sharply by 9.74% in the intraday period, and finally closed down 4.99%. After experiencing continuous declines, the price of the main contract LC2701 has fallen below 140,000 yuan/ton. “At the time of the last round of decline, the cost of some outsourced lithium mines to produce lithium carbonate was already around 140,000 yuan/ton. Since then, several factories have stopped production and maintenance.” An industry association source said that if prices continue to fall, it is not ruled out that some high-cost production lines will cut production again. Industry insiders believe that this round of sharp decline is due to multiple factors: on the supply side, a third party agency recently adjusted the statistical system to “reveal” a hidden inventory of nearly 100,000 tons, compounded by an 11% month-on-month increase in domestic production in September and the resumption of overseas lithium mine shipments such as Zimbabwe, and market supply expectations broadened; the demand side showed significant structural differentiation, and production schedules for lithium iron phosphate remained scarce, but the order and delivery pace of some leading Sanyuan battery cell manufacturers clearly weakened. Furthermore, relevant national departments are continuing to promote early warning and control mechanisms for power and energy storage battery production capacity.

On September 11, LC2701, the main contract for lithium carbonate futures, once fell sharply by 9.74% in the intraday period, and finally closed down 4.99%. After experiencing continuous declines, the price of the main contract LC2701 has fallen below 140,000 yuan/ton. “At the time of the last round of decline, the cost of some outsourced lithium mines to produce lithium carbonate was already around 140,000 yuan/ton. Since then, several factories have stopped production and maintenance.” An industry association source said that if prices continue to fall, it is not ruled out that some high-cost production lines will cut production again. Industry insiders believe that this round of sharp decline is due to multiple factors: on the supply side, a third party agency recently adjusted the statistical system to “reveal” a hidden inventory of nearly 100,000 tons, compounded by an 11% month-on-month increase in domestic production in September and the resumption of overseas lithium mine shipments such as Zimbabwe, and market supply expectations broadened; the demand side showed significant structural differentiation, and production schedules for lithium iron phosphate remained scarce, but the order and delivery pace of some leading Sanyuan battery cell manufacturers clearly weakened. Furthermore, relevant national departments are continuing to promote early warning and control mechanisms for power and energy storage battery production capacity.